Where any premises becomes temporarily unoccupied as a consequence of COVID-19, many Insurers are now reviewing their policy restrictions effective from the time the unoccupancy starts, until such time as the restrictions on premises being used or occupied are lifted.
Some Insurers have confirmed they will maintain existing cover for a period of 30 days from the date of closure/unoccupancy, which is the current standard period written into most insurance policies, and review on any further Government imposed restrictions. Other Insurers have extended this period to allow for 60 days of unoccupancy, and some for 90 days of unoccupancy, before any cover restrictions are applied.
Any building left unoccupied naturally poses a greater insurance risk so these extensions are subject to policyholders applying appropriate best endeavours to manage their premises, including appropriate security measures while they are closed, and adhering to Government advice and action. This subjectivity will continue to apply unless otherwise agreed by Insurers to be impractical due to COVID-19 Government-directed actions limiting or restricting the movement of people.
Any specific cases where there may be difficulty in adhering to security measures will, we are advised, need to be referred on a case by case basis for Insurers to review.
Unfortunately, we have not yet seen a response from all the Insurers that we deal with on the issue of businesses closing and premises being left empty, so if you have any concerns about your own particular insurance cover or need any further advice or guidance on this issue, please let us know. Contact your usual Account Executive or Account Handler or ring the office number and one of our staff will be happy to assist.
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